Oil prices fall on relentless rise in U.S. crude output

The news is expected to be light on Monday so most traders expect the price action to be driven by the U.S. Dollar and appetite for risk.

Oil prices would have plunged even lower if OPEC and Russian Federation hadn't placed a restraint on production to avoid a glut or oversupply.

The rising concern of another supply disaster this week can lead to bigger problems such as another oil supply glut might hit the market. Investors' bullish wagers on oil fell last week for the first time in three weeks.

The high volatility of trading oil, and it being one of the most actively traded commodities in the world, makes it a sought after and an appealing market for investors to get in to.

The crude outputs are looking to take another miserable turn as the U.S. daily reports may climb to levels similar to what they were producing previous year.

Oil prices were down on Tuesday morning in Asia amid continued concerns over rising US output and tight supply from the Organization of the Petroleum Exporting Countries (OPEC).

"Oil prices moved lower. after the EIA published a report that crude production from seven major United States shale plays is expected to see a climb", said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore. The production from large shale formations is expected to increase by 131,000 barrels per day in April compared to March to a record 6.95 million barrels per day, shows the analyze of the International Energy Agency.

OPEC has been reducing output by around 1.2 million barrels per day (bpd) since January 2017.

US West Texas Intermediate (WTI) crude futures were at $62.22 a barrel up 18 cents, or 0.3 per cent while Brent crude futures were at $65.70 per barrel, up 21 cents, or 0.3 per cent, from their previous close.

Demand from Asia, particularly China, will continue to support prices.

On the other hand, the Iranian oil minister Bijan Zanganeh mentioned that the Organization of the Petroleum Exporting Countries or OPEC is going could come to a conclusion on their June meeting to ease the current production curbs by the year 2019.

Also on Sunday, Saudi officials said they would be delaying the initial public offering of Saudi Aramco until 2019.